Bangalore-based drug maker Micro Labs is close to buying pharmaceutical manufacturing units in Egypt and Indonesia. The move is part of the company’s global expansion plans that also include other major markets such as the US and South Africa.
“We are in advanced stage of talks with a company in Egypt to buy a dermatology formulation manufacturing facility. We are almost through with the deal and may make an announcement in around four weeks,” Micro Labs Chairman and Managing Director Dilip Surana told Business Standard.
According to Surana, the company is also eyeing a facility in Indonesia and is in the final stage of discussions there as well. Currently, Micro Labs has presence in the UK, Thailand, Russia, Vietnam and Ukraine. In India, the company operates through a total of 17 units, which includes three US Food and Drugs Administration-approved facilities as well. Micro Labs caters to the US market from India. “We are also looking for a buyout opportunity in the US. We have identified two-three units there as well and are working on them,” said Surana. He added the company is planning to do a mid-size acquisition in the US.
With an annual turnover of around Rs 1,800 crore, Micro Labs has earmarked a capital expenditure of Rs 600 crore for the next two years.
“The acquisitions in Indonesia and Egypt will be internally funded,” said Surana.
Notably, industry sources indicated that US-based Mylan Inc is eyeing to buy Micro Labs. However, Surana denied any talks between the two companies. “There has been no discussion and we are not looking to sell at all. Instead, we are planning expansion of our global footprint,” he said.
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“We do not comment on rumours and speculation,” Nina Devlin, vice-president (global communications), Mylan, said in reply to an e-mail query.
Micro Labs’ product portfolio includes various specialties such as cardiology, diabetes, anti-infectives, ophthalmology and pain.
The company is also developing a new unit in Sikkim, with an investment of Rs 200, crore to cater to domestic as well as export markets.
The plant is expected to commence operations by June, Surana said.